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YOUR HOME; Sidewalk Liability Hits Home

UNTIL last month, the strip of concrete between the curb and the front of most commercial and multifamily residential buildings in New York City was essentially the city's turf and ultimately the city's problem. While property owners -- including co-op corporations and condominium associations -- have long been responsible for keeping the sidewalk in front of their buildings in good repair, the ultimate liability for injuries sustained in ''slip and fall'' cases has always rested with the city.

That changed, however, on Sept. 15, when three amendments to the New York City Administrative Code took effect. The changes not only make property owners responsible for keeping the sidewalks that abut their properties ''in a reasonably safe condition,'' but also require them to carry insurance to cover injuries sustained on those sidewalks and make them legally liable for monetary damages that arise from such injuries.

That, real estate lawyers say, is likely to have a significant impact on property owners throughout the city. ''The new laws are legally sound and logical,'' said Paul F. Clark, a former assistant New York City corporation counsel who is now a partner in a Manhattan law firm. ''But their provisions are unwieldy and leave lots of gaps that courts and lawyers are going to have to deal with over the next few years.''

Before Sept. 15, Mr. Clark said, property owners had a legal duty to maintain the sidewalks in front of their buildings in ''safe repair'' and ''free of all snow and debris'' even though the sidewalk itself was owned by the city. Notwithstanding that obligation, the city remained civilly liable for any damages sustained by people who were injured as the result of defects or unsafe conditions.

As a practical matter, the laws requiring the owners to keep their sidewalks clean and in good condition basically had no teeth. For example, Mr. Clark said, if there was a crack or other unsafe condition in a sidewalk in front of a building, the city would send a notice to the owner requiring him to address the problem. If the owner failed to do so, the city itself would make the repair and then bill the property owner for the cost of the repair.

''A lot of property owners would just sit back and let the city do it,'' Mr. Clark said. In addition to getting the repair done at a reasonable price, the property owner, by waiting for the city to take care of the problem, would avoid having to deal with private contractors, he said. ''And if the owner was lucky, the city might never get around to billing him for the work.''

A similar situation existed with regard to snow removal. ''The building owners were legally responsible for snow removal, but the only real penalty was a fine,'' Mr. Clark said. Since the city was ultimately liable for injuries sustained by people who fell on a slippery sidewalk, he said, it was safer -- from a legal liability perspective -- for property owners to let nature take its course after a snowstorm.

''If the owner tried to clear the sidewalk and did it negligently, he could be legally liable for someone's injuries,'' he said. ''But if the owner did nothing at all, he might get a fine, but he wouldn't be responsible for damages. That would be the problem of the city.''

Now, however, the city's problem is also the owner's problem. ''The new laws,'' Mr. Clark said, ''put the responsibility for the sidewalks in the hands of those who are in the best position to take care of them: the owners.''

Basically, he said, the law requires property owners to ''install, construct, reconstruct, repave, repair or replace'' defective sidewalk components. The law also requires the owner to remove ''snow, ice, dirt or other material from the sidewalk.'' (Mr. Clark noted that the law does not apply to one-, two- or three-family properties that are at least partially occupied by the owner and used exclusively for residential purposes.)

While many provisions of the new law basically mirror the current state of sidewalk law, one new provision is a dramatic departure from the status quo. ''Property owners are now going to be the prime target of most slip-and-fall litigation in the city,'' said Eva Talel, a Manhattan co-op and condominium lawyer. ''This is going to have an economic impact on the owners, and it's not going to be a positive one.''

In addition to shifting the liability for damages directly onto property owners, the new laws also require building owners to carry liability insurance to cover such exposure.

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Ms. Talel noted that most large co-op and condominium corporations and associations generally already have liability insurance coverage. However, she said, insurance companies that insure commercial buildings have been well aware that when the lawsuits start flying in New York City, the city itself was probably going to ante up for the damages. In the past three years, in fact, the city paid $189 million in such claims. With the owners -- and their insurers -- now primarily liable, that money will have to come from somewhere else.

Moreover, she said, it is likely that carriers will require sidewalk repairs to be made as a condition of coverage, thereby imposing an additional expense on the property owner. ''In the end, the money is ultimately going to come out of the shareholder's and unit owner's pockets,'' she said.

Ms. Talel noted that while the new laws require building owners to carry liability insurance to cover ''slip and fall'' cases, they do not indicate just how much coverage there must be. Moreover, she said, the law does not specify what the penalty will be for failure to obtain such coverage.

As a result, Ms. Talel said, it is possible that some owners may have too little coverage and others may not have any coverage at all. But, she said, the law allows the city to pay an injured person who obtains a judgment against a property owner up to $50,000 in uninsured medical expenses and then go after the property owner for reimbursement.

Marc Luxemburg, a Manhattan lawyer who is also president of the Council of New York Cooperatives and Condominiums, said the change in the law would have far-reaching impact on co-op and condominium boards and their managing agents.

''What it means is that every time somebody slips and falls in front of your building, the building is going to get sued,'' he said. ''And that means that managing agents, superintendents, doormen and board members are all going to end up being witnesses in litigation.''

In addition, Mr. Luxemburg said, the change in the law now clearly puts the responsibility on boards to identify damaged sidewalks and then do something about the damage. ''Now the board and the manager has to go and put out specifications for the job, hire a contractor and then make sure the job was done correctly,'' he said.

Susan Lipp, legal editor of the Apartment Law Insider, a newsletter for property owners, agreed.

''Building owners should inspect their sidewalks at least once a month,'' Ms. Lipp said. ''Look for any defects that might cause a hazard. And if a sidewalk slab rocks or seesaws or if one slab is higher than the one next to it, make a note of it, repair it and then document that the repair has been made.''

Since property owners are now specifically liable for any injuries caused by a defective sidewalk, they should not wait for the city to identify problems and order the necessary repairs. ''You have to keep track yourself,'' she said. ''You have to be proactive.''